Prodigy Gold
The Magino mine is in the Goudreau-Lochalsh gold district of the Wawa gold camp. The local stratigraphy of the Goudreau-Lochalsh district consists of felsic to intermediate pyroclastic metavolcanic rocks overlain by banded iron formation. North of the mine site, massive and schistose, mafic to intermediate metavolcanic rocks are common. Multiple medium- to coarse- grained quartz dioritic to dioritic sills and/or dikes intrude all metavolcanic rocks. Gold mineralization at the Magino mine is mostly hosted by the Webb Lake stock, a felsic, granodiorite, intrusion. The east-northeast long axis of the Webb Lake stock is parallel to the regional stratigraphy and structural fabric, and has a steep northerly dip. The Webb Lake stock is cut by a myriad of carbonate, quartz, tourmaline, pyrite ± gold veins that dominantly strike in an east-northeast direction.
Gold was discovered in the Goudreau-Lochalsh district in 1918. The Magino mine property was the site of numerous exploration and test mining programs from the mid-1930's through the early 1980's. The Magino gold mine, operated by Muscocho Explorations Ltd., was in production from 1988 until the summer of 1992. During that time, the mine produced 697,190 tonnes of ore at a recovered grade of 4.70 gpt gold yielding 105,543 ounces of gold. All production was from underground operations utilizing both shrinkage and long hole stoping.
Gold Resources
In November 2011 Prodigy Gold released an updated NI 43-101 compliant mineral resource estimate for the Magino mine project (please see Press Release dated November 2, 2011). The updated mineral resource estimate, reported within a conceptual pit shell, was completed by Snowden Mining Industry Consultants Inc. (Snowden). Indicated gold resources are reported to be 2,176,000 ounces grading 1.00 gpt gold (67.6M tonnes), plus an additional 1,721,000 ounces of Inferred gold resources grading 0.99 gpt gold (54.2 million tonnes). This updated mineral resource estimate includes the results from almost 38,000 metres of core drilling completed by Prodigy since January 2011 in addition to 155,800 metres of previous core drilling. During 2011, Prodigy has more than doubled the gold resource at Magino, completed one PEA and released the results of an updated PEA (see News Release dated December 22, 2011). As of the end of 2011, both 43-101 resource estimate reports and the initial PEA are filed on SEDAR. The latest resource estimate is set out in the Table 1 below and reported at a series of cut off grades.
| | | Indicated | | | Inferred | | |
| | | | | | | | |
| Cut off(gpt Gold) | Tonnes | Grade (gpt Gold) | Grams Gold | Ounces Gold | Tonnes | Grade (gpt gold) | Grams Gold | Ounces Gold |
| 2.00 | 5,562,000 | 3.36 | 18,705,000 | 601,000 | 4,273,000 | 3.47 | 14,836,000 | 477,000 |
| 1.50 | 10,345,000 | 2.60 | 26,928,000 | 866,000 | 7,345,000 | 2.73 | 20,096,000 | 646,000 |
| 1.00 | 20,779,000 | 1.91 | 39,605,000 | 1,273,000 | 15,897,000 | 1.91 | 30,411,000 | 978,000 |
| 0.75 | 31,730,000 | 1.55 | 49,086,000 | 1,578,000 | 25,072,000 | 1.53 | 38,335,000 | 1,233,000 |
| 0.50 | 50,056,000 | 1.21 | 60,368,000 | 1,941,000 | 40,464,000 | 1.18 | 47,748,000 | 1,535,000 |
| 0.35 | 67,555,000 | 1.00 | 67,690,000 | 2,176,000 | 54,242,000 | 0.99 | 53,537,000 | 1,721,000 |
| 0.01 | 99,205,000 | 0.76 | 74,297,000 | 2,421,000 | 73,087,000 | 0.80 | 58,250,000 | 1,873,000 |
| Table 1: Magino November 2011 Snowden resource estimate |